SAN DIEGO – Federal prosecutors agreed Thursday to move the corruption case of former Central Intelligence Agency official Kyle “Dusty” Foggo to Virginia and hinted he will face more charges in the future.

In addition, prosecutors said they will drop charges in that case against Foggo's lifelong friend and co-defendant, former Poway defense contractor Brent Wilkes.

But they reserved the right to re-indict Wilkes on the same or similar charges later.

Both moves came as Wilkes prepares for his sentencing Tuesday by federal Judge Larry A. Burns. Wilkes was convicted in November of bribery, fraud and money laundering in the investigation of former Rep. Randy “Duke” Cunningham.

He faces as much as 60 years in prison for lavishing Cunningham with gifts, trips and cash and reaping millions in federal defense contracts with the corrupted assistance of the former congressman from Rancho Santa Fe.

Late Thursday Mark Geragos, the lawyer for Wilkes, filed court papers asking that Wilkes remain free on bond while he appeals his conviction – a process that could take years.

Geragos said Wilkes should remain free because he is not a risk to flee and hide while out of custody, and he presents no danger to the community. He also said the case has “substantial legal issues” to be pursued on appeal.

Those three reasons are needed for a court to allow someone to remain free while appealing. But Geragos has an uphill task with Burns, who has a practice of putting defendants into custody on the day of their sentencing and advises them to have their affairs in order by that time.

Wilkes was facing charges of conspiracy, wire fraud and money laundering in the case involving Foggo. Prosecutors said he also provided meals, trips and other perks for Foggo and promised him a job upon retiring.

In return, Foggo – once the third-highest ranking official at the spy agency – is alleged to have worked to steer government work to ADCS Inc., one of Wilkes' companies. In one instance, prosecutors contend Foggo tried to get Wilkes a $132 million contract to provide armored vehicles and air support to the CIA.

For the past several months, Foggo's Washington, D.C.-based lawyers have asked Burns to transfer the case out of California. They said it made sense because 90 percent of the actions alleged in the complaint took place in that area and not in Southern California, and virtually all the witnesses and documents are based there.

While Burns agreed the case should be moved, both prosecutors and Wilkes balked. But on Feb. 1, Wilkes dropped his objections to the move.

The government followed suit Thursday. In a brief court filing they said that “the government has recently uncovered evidence to support additional charges” against Foggo.

Mark J. MacDougall, Foggo's lawyer, declined to comment on the government's filing Thursday. A search of court filings did not turn up any new charges against Foggo either in San Diego or the Washington D.C. area.

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